Rice manufacturers failed to meet the ambitious export target of $3 billion in fiscal year 2010-11 and shipments fell even below previous year’s level following damage to the crop by widespread floods and late arrival of the produce in the market.
Inaccurate and delayed estimate of the reduction in rice production because of the deluge led to hoarding and black-marketing of the commodity, which kept Pakistani rice prices high compared to its competitors in the international market, a rice manufacturer said. Pakistan’s major rivals in the world rice market are Thailand, Vietnam and Brazil.
In 2010-11 which ended in June, traders exported 3.7 million tons of rice worth $2.09 billion, which was 0.9 million tons and $174.6 million less than the previous year. In 2009-10, 4.6 million tons of rice worth $2.26 billion was exported.
Of the total exports in 2010-11, basmati exports stood at 1.14 million tons valuing $952.6 million while non-basmati exports were 2.56 million tons valuing $1.14 billion.
Rice Exporters Association former chairman and FPCCI standing committee Senior Vice-Chairman Anwar Mian Noor said Pakistan got reduced orders from the world rice market due to the flood damage and late maturity of crop, adding importers only purchased rice from Pakistani traders when they did not get the commodity from other countries. “Our rice was also expensive by $50 per ton compared to the competitors,” he said.
However, Noor said China was willing to buy rice in bulk quantities from Pakistan and Indonesia had also expressed interest in importing the commodity. He saw the $3 billion export mark an easy task to achieve this fiscal year because of a handsome crop, but cautioned that the country should remain vigilant in the current monsoon season as floods may threaten the crop this year too.
Published in The Express Tribune, July 16th, 2011.
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